TPG Real Estate Partners (TREP), the dedicated real estate equity investment platform of global alternative asset firm TPG, has launched a new venture dubbed 4th Industrial (4i) to invest in UK light industrial real estate.
The venture has been founded in partnership with industrial property specialist Derek Heathwood, the former UK property director of Hansteen Holdings.
According to TREP, 4i has already acquired 1.13 mln ft2 (105,000 m2) of urban multi-let industrial real estate in locations in the UK North West; Yorkshire; West Midlands; and South East.
The portfolio, which consists of 125 units across seven sites and is to be let to 89 tenants including DHL, SIG, Encon Insulation and Softbox, was acquired in four separate transactions.
Michiel Celis, managing director at TREP, said: 'We are delighted to partner with Derek to form 4i. He brings a wealth of experience in the sector from his time at Hansteen and heads up a team with best-in-class acquisition and asset management capabilities.
'The 4th Industrial venture is typical of TREP’s approach of building platforms around high quality management teams.'
In addition 4i has entered into agreements with Network Space to develop a further 176,000 ft2 of multi let property across two sites in the North West.
The properties in the initial portfolio include Crendon Industrial Estate in Thame, sold by Nuveen; Alpha Business Park in Birmingham, sold by funds managed by DTZ1; Melford Court in Warrington, Faraday Park in Swindon, Moorbrook Park in Didcot, purchased from KFIM; and Tunstall in Stoke-on-Trent and Ashroyds Business Park in Barnsley, sold by Network Space.
Day-to-day
The development sites are at Estuary Prime and Brookfield Drive in Liverpool. TPG said that Heathwood and his team would be overseeing the day-to-day management of the platform and pursue additional acquisition opportunities in partnership with TREP.
Heathwood, managing director of 4i, said: 'Our strategy focuses on buying quality multi-let light-industrial properties in key UK submarkets.
'These initial acquisitions will provide a strong foundation on which to build a platform of scale, placing 4i firmly on the map. We can already see a pipeline of new opportunities to grow the portfolio.'
TREP said that there were several near-term lease events across the highly reversionary portfolio, plus some 240,000 ft2 (21 %) of vacant space, providing immediate opportunities for value enhancement.
James Piper, partner at TREP, concluded: 'We look forward to growing 4i purposefully, building on our thematic conviction in the UK multi-let industrial sector.
'This is a key focus for TREP, whereby we will provide Derek and the team with the capital and support to achieve our collective goal and create a platform of significant scale.'
DLA Piper acted as legal advisor on all acquisitions. WSP (environmental) and Cushman and Wakefield (building and technical surveys) advised on all acquisitions.
B8 advised Network Space, while Knight Frank advised both KFIM and Nuveen and BNP advised DTZi.
